Question

Which HMO model is likely to require heavy capital outlays to expand into new markets?

a. Staff model
b. Group model
c. Network model
d. IPA model

Answer 1

The Staff model HMO requires heavy capital investment to expand because it necessitates building new facilities and hiring medical staff directly.

Step-by-step explanation:

The Staff model HMO is likely to require heavy capital outlays to expand into new markets. This model involves the HMO owning its healthcare facilities and directly employing physicians. Expansion thus requires significant investment in physical infrastructure and staff, making it a capital-intensive endeavor.